Following its listing, CAREIT’s gearing of about 31% offers a headroom of $559 million, while Centurion Corporation retains strategic unitholding and right of first refusal (ROFR) rights of over $2.6 billion pipeline assets, which will support future asset injections and a potential re-rating in valuation, Ng adds.
uSMART analyst Ng Xin Yang has initiated “buy” on Centurion Corporation with a target price of $1.80 citing its “superior margins, structural demand and scalable REIT-driven monetisation”.
The company’s spin-off listing, Centurion Accommodation REIT (CAREIT), crystallised $1.8 billion of stabilised assets, turning Centurion Corporation into a sponsor-operator model with recurring management fees and clearer asset valuation, Ng notes in his report dated Nov 5.
